This should probably be a grass block upon generation, rather than be forced to grow into one.
I'm not sure what causes this - the dirt block may be a jigsaw block in the structure file that converts to a dirt block rather than a grass block, or the fence may be a jigsaw block, resulting in the grass dying.
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Can confirm in 21w03a. Here's the provided information so you can just Copy + Paste this:
Seed: -7882263134696652088
Coordinates: /execute in minecraft:overworld run tp @s 248.50 69.16 691.50 40.60 35.37
Can confirm in 24w09a, this time the seed is in MC-202984.
Hi there!
I can confirm.